Global macro overview for 06/10/2015:
The Reserve Bank of Australia decided to keep the interest rate at the same level this month (2%) in line with overall market consensus. Nevertheless, a sluggish outlook for the global economy and unstable financial markets conditions do not help much the Australian economy. The RBA inflation target level of 2-3% is still way above the current estimated inflation that is at 1,5%. Moreover, key commodity prices (iron ore, copper, crude oil) are much lower than a year ago as a result of oversupplied market, and this is another factor weighting on the RBA's decision.
The AUD/USD pair moved higher after the RBA's decision. Currently, it is trading just under the upper daily golden channel line. In case of any breakout, the next resistance is seen at the level of 0.7234 and support is seen at the level of 0.6906.
